Harris Corporation (NYSE:HRS) and Albany International Corp. (NYSE:AIN) today announced a definitive agreement under which Albany International will acquire Harris’ Aerostructures business for an enterprise value of $210 million, including $187 million in cash at closing and the assumption of a $23 million capitalized lease. The transaction is subject to customary closing conditions and regulatory review, and is expected to close by the end of the first calendar quarter or early second calendar quarter of 2016.
“The sale of Aerostructures reflects our strategy to optimize our business portfolio,” said William M. Brown, chairman, president and chief executive officer. “Proceeds from the transaction will be used to pay down debt.”
The Aerostructures business is included in the company’s Electronic Systems segment and was acquired as part of Harris’ acquisition of Exelis in May 2015. The business had calendar 2015 revenue of $77 million and operates in two facilities in Salt Lake City, Utah.
Harris Aerostructures designs, manufactures and assembles advanced composite structures found throughout commercial and military aircraft - from wings and tanks to rotor blades and the airframes that form the shell of the aircraft. These composites combine high-strength fibers that deliver many of the same benefits of metal - strength, stiffness, stability and the ability to perform in extreme temperatures - with the added benefit of less weight and more corrosion resistance.
About Albany International
Albany International is a global advanced textiles and materials processing company with two core businesses. Machine Clothing is the world’s leading producer of custom-designed fabrics and belts essential to production in the paper, nonwovens, and other process industries. Albany International Engineered Composites is a rapidly growing supplier of highly engineered composite parts for the aerospace industry. Albany International is headquartered in Rochester, New Hampshire, operates 19 plants in 10 countries, employs 3,900 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the company and its products and services can be found at www.albint.com.
About Harris Corporation
Harris Corporation is a leading technology innovator, solving our customers’ toughest mission-critical challenges by providing solutions that connect, inform and protect. Harris supports customers in more than 125 countries, has approximately $8 billion in annual revenue and 22,000 employees worldwide. The company is organized into four business segments: Communication Systems, Space and Intelligence Systems, Electronic Systems, and Critical Networks. Learn more at harris.com.
Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions. Such statements are made in reliance on the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this release include but are not limited to anticipated satisfaction of the closing conditions for the sale of the Aerostructures business, the anticipated timing of the closing of the sale of the Aerostructures business and the anticipated use of proceeds from the sale of the Aerostructures business. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. The company's consolidated results, future trends and forward-looking statements could be affected by many factors, risks and uncertainties, including but not limited to: delays in the closing of the transaction or anticipated satisfaction of closing conditions; and other potential uses of proceeds. Further information relating to factors that may impact the company's results, future trends and forward-looking statements are disclosed in the company's filings with the SEC. The forward-looking statements contained in this release are made as of the date of this release, and the company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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Contacts:
Jim Burke, 321-727-9131
jim.burke@harris.com
